On January 20, 2026, the First Department issued a decision in Century First Credit Solutions, Inc. v. Priority Capital, LLC, 2026 NY Slip Op. 00224, holding that a corporate officer who participates in and benefits from a company’s tort can be individually liable for it, explaining:
However, Supreme Court improperly dismissed the misappropriation of trade secrets cause of action as asserted against the individual defendants. In granting the motion to dismiss against those defendants, the court limited its analysis of their liability to the issue of whether they completely dominated the corporation with respect to the transaction attacked, finding that there was no basis to pierce the corporate veil. However, even where the corporate veil is not pierced, a corporate officer who participates in and benefits from the commission of a tort may still be held individually liable. The record presents sufficient evidence regarding the individual defendants’ participation, for their own personal gain, in the corporate defendant’s allegedly tortious acts, thus raising issues of material fact as to their personal liability. Thus, the claim for misappropriation of trade secrets should be reinstated as against Woodcock and Amato.
Further, Supreme Court improperly dismissed the cause of action for conspiracy to misappropriate trade secrets. This conspiracy claim was dismissed not based on the merits of the claim, but because the court had already dismissed all causes of action against the individual defendants, thus precluding a finding of any agreement between or among defendants. However, because the cause of action for misappropriation of trade secrets is being reinstated as against Woodcock and Amato in their individual capacities, the related conspiracy cause of action should also be reinstated. Moreover, the record shows that there are triable issues of fact as to the individual defendants’ liability for the conspiracy cause of action.
(Internal citations omitted).